Loading…
Under O.C.G.A. § 33-4-6, an insurer that refuses in bad faith to pay a covered loss can be liable for the full amount of the loss plus a 50% statutory penalty plus reasonable attorney fees. The procedure requires a 60-day written demand to the insurer that meets specific content requirements. Bad-faith litigation is fact-intensive — most underpayment is not bad faith — but where it applies, the financial consequences for the carrier are significant.
What 'bad faith' means in Georgia: refusing to pay where there is no reasonable basis to dispute coverage. Honest disagreement over scope of loss is not bad faith. Honest disagreement over policy interpretation is not bad faith. Refusing to pay despite clear coverage and clear damages, or pursuing a frivolous coverage defense, can be.
The 60-day demand procedure is mandatory. The demand must state the amount claimed, identify the policy, and reference O.C.G.A. § 33-4-6. The insurer has 60 days to pay the amount claimed; if they don't, the bad-faith claim attaches when suit is filed.
Bad-faith claims are most often successful in property damage and uninsured-motorist coverage disputes where the documentation strongly supports the claimant. They are harder in liability disputes where reasonable disagreement is possible. We screen cases against the bad-faith framework at the consultation.
This answer is general legal information, not specific legal advice. Pereira & Associates can review your particular facts in the free consultation. Schedule one →
One call. No fee unless we recover. Atlanta and the entire metro perimeter.
FREE CONSULTATION(404) 436-2411Atlanta · Georgia-licensed attorneys